--%>

Private closed economy based question

The data of columns 1 and 2 of the below table are for a private closed economy. Given the original $20 billion level of exports, determine the equilibrium GDP if imports were $10 billion greater at each level of GDP? 

 

328_Private closed economy.png

E

Expert

Verified

Imports = $40 billion: In the private open economy aggregate expenditures would fall by $10 billion at each GDP level and the new equilibrium GDP would be $300 billion.

   Related Questions in Finance Basics

  • Q : Define Financial Controls Financial

    Financial Controls: Any measure of how fine a company or department controls its costs, at times stated as how far beneath or over budget it is. Financial controls are a critical portion of any financial system. They make sure that the resources are b

  • Q : Financial strategy describe the sales

    describe the sales forecasting process ?

  • Q : Describe who owns a credit union

    Describe who owns a credit union? Credit unions are owned through their members. While credit union members put money in their credit union, they are not "depositing" the money technically.  In spite of, they are purchasing shares of the cr

  • Q : Describe trustworthy collateral from

    Describe trustworthy collateral from the lenders' perspective? Describe whether accounts receivable and inventory are trustworthy collateral. Assets which are readily marketable, of stable value, and not likely to "disappear" make for trustwort

  • Q : Explain Financial Models Financial

    Financial Models: A model which symbolizes the financial statements or financial operations of a company in terms of its business parameters and forecasts future financial performance. Models are employed for risk management by examining various econo

  • Q : Explain the term Continuous

    Continuous Appropriation: The constitutional or statutory expenses authorization that is renewed each year without additional legislative action. The amount obtainable might be particular, recurring sum each year; all or a specified part of the procee

  • Q : Employ the aggregate demand-aggregate

    Normal 0 false false

  • Q : Components of the M1 money supply

    Normal 0 false false

  • Q : Explain Planning Estimate Planning

    Planning Estimate (PE): A document employed to record and monitors those present and budget year expenditure adjustments comprising budget change proposals accepted for inclusion in the Governor's Budget. PEs is broken down by department, character, f

  • Q : Modify-open market operations-switching

    Normal 0 false false